BP BHEAD INT S

AN ACT Relating to property tax relief for destroyed property; adding a new chapter to Title 84 RCW; making an appropriation; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Claimant" means a person who either elects to defer payment of the special assessments or real property taxes accrued on the claimant's property by filing a declaration to defer as provided by this chapter.

(2) "Department" means the department of revenue.

(3) "Real property taxes" means ad valorem property taxes levied on the property in this state in the preceding calendar year.

(4) "Special assessment" means the charge or obligation imposed by a city, town, county, or other municipal corporation upon property specially benefited by a local improvement, including assessments under chapters 35.44, 36.88, 36.94, 53.08, 54.16, 56.20, 57.16, 86.09, and 87.03 RCW and any other relevant chapter.

NEW SECTION. Sec. 2. A claimant may defer payment of either special assessments or real property taxes, or both, on property that is reduced in value under chapter 84.70 RCW for the year if the following conditions are met:

(1) The claimant must have owned, at the time of filing, the property on which the special assessment or real property taxes have been imposed. For purposes of this subsection, a property owned by a marital community or owned by cotenants shall be deemed to be owned by each spouse or cotenant. A claimant who has only a share ownership in cooperative housing, a life estate, a lease for life, or a revocable trust does not satisfy the ownership requirement.

(2) The claimant must have and keep in force fire and casualty insurance in sufficient amount to protect the interest of the state. If the claimant fails to keep fire and casualty insurance in force to the extent of the state's interest, the amount deferred shall not exceed one hundred percent of the claimant's equity value in the land or lot only.

NEW SECTION. Sec. 3. A claimant electing to defer special assessments or real property taxes under this chapter may receive a refund of the special assessments or real property taxes paid for the year by applying to the department under procedures adopted by rule by the department.

NEW SECTION. Sec. 4. (1) Each claimant electing to defer payment of special assessments or real property tax obligations under this chapter shall file with the county assessor, on forms prescribed by the department and supplied by the assessor, a written declaration thereof. The declaration to defer shall be filed no later than thirty days before the tax or assessment is due or thirty days after any reduction in value under chapter 84.70 RCW, whichever is later. However, for good cause shown, the department may waive this requirement.

(2) The declaration shall designate the property to which the deferral applies and shall include a statement setting forth any relevant information required by the rules of the department. Each copy shall be signed by the claimant subject to the penalties as provided in chapter 9A.72 RCW for false swearing.

(3) The county assessor shall determine if each claimant shall be granted a deferral for each year but the claimant shall have the right to appeal this determination to the county board of equalization whose decision shall be final as to the deferral of that year.

NEW SECTION. Sec. 5. If the claimant is unable to make his or her own declaration of deferral, it may be made by a duly authorized agent or by a guardian or other person charged with care of the person or property of such claimant.

NEW SECTION. Sec. 6. If any property is under mortgage or purchase contract requiring accumulation of reserves out of which the holder of the mortgage or contract is required to pay real estate taxes, the holder shall cosign the declaration of deferral either before a notary public or the county assessor or his or her deputy in the county where the real property is located.

NEW SECTION. Sec. 7. Whenever a person's special assessment or real property tax obligation is deferred under the provisions of this chapter, the amount deferred and required to be paid under section 10 of this act shall become a lien in favor of the state upon his or her property and shall have priority as provided in chapters 35.50 and 84.60 RCW. However, the interest of a mortgage or purchase contract holder who is required to cosign a declaration of deferral under section 6 of this act shall have priority to the deferred lien. This lien shall bear interest at the rate of eight percent per year from the time it could have been paid before delinquency until paid or from the date of refund for refunds under section 3 of this act until paid. In the case of a mobile home, the department of licensing shall show the state's lien on the certificate of ownership for the mobile home. In the case of all other property, the department of revenue shall file a notice of the deferral with the county recorder or auditor.

NEW SECTION. Sec. 8. The county assessor shall:

(1) Immediately transmit one copy of each declaration to defer to the department. The department may audit any declaration and shall notify the assessor as soon as possible of any claim where any factor appears to disqualify the claimant for the deferral sought.

(2) Transmit one copy of each declaration to defer a special assessment to the local improvement district that imposed such assessment.

(3) Compute the dollar tax rate for the county as if any deferrals provided by this chapter did not exist.

(4) As soon as possible notify the department and the county treasurer of the amount of real property taxes deferred for that year and notify the department and the respective treasurers of municipal corporations of the amount of special assessments deferred for each local improvement district within such unit.

NEW SECTION. Sec. 9. After receipt of the notification from the county assessor of the amount of deferred special assessments or real property taxes, the department shall pay, from amounts appropriated for that purpose, to the treasurers of such municipal corporations the amounts, equivalent to the amount of special assessments or real property taxes deferred, to be distributed to the local improvement or taxing districts that levied the special assessments or taxes so deferred.

NEW SECTION. Sec. 10. Special assessments and real property tax obligations deferred under this chapter shall become payable together with interest as provided in section 7 of this act:

(1) On January 1st of the third year following the year for which the special assessments or real property taxes are deferred;

(2) Upon the sale of property which has a deferred special assessment or real property tax lien upon it;

(3) Upon the death of the claimant with an outstanding deferred special assessment or real property tax lien, except as provided in section 12 of this act;

(4) Upon the condemnation of property with a deferred special assessment or real property tax lien upon it by a public or private body exercising eminent domain power, except as otherwise provided in RCW 84.60.070; or

(5) Upon failure of the condition in section 2(2) of this act.

NEW SECTION. Sec. 11. (1) The county treasurer shall collect all the amounts deferred together with interest under this chapter, in the manner provided for in chapter 84.56 RCW. For purposes of collection of deferred taxes, chapters 84.56, 84.60, and 84.64 RCW apply.

(2) When any deferred special assessment or real property taxes together with interest are collected, the moneys shall be credited to a special account in the county treasury. The county treasurer shall remit the amount of deferred special assessment or real property taxes together with interest to the department within thirty days from the date of collection.

(3) The department shall deposit the deferred taxes in the state general fund.

NEW SECTION. Sec. 12. (1) A surviving spouse of the claimant or a cotenant may elect to continue the property in its deferred tax status, but not later than January 1st of the third year following the year for which the special assessments or real property taxes were deferred.

(2) The election under this section to continue the property in its deferred status shall be filed in the same manner as an original claim for deferral is filed under this chapter, but not later than ninety days after the date of the claimant's death.

NEW SECTION. Sec. 13. The department shall design forms and adopt rules under chapter 34.05 RCW as shall be necessary or desirable to administer this chapter.

NEW SECTION. Sec. 14. The sum of . . . . . . dollars, or as much thereof as may be necessary, is appropriated from the general fund to the department of revenue for the biennium ending June 30, 1997, to carry out the purposes of this act.

NEW SECTION. Sec. 15. Sections 1 through 13 of this act shall constitute a new chapter in Title 84 RCW.

NEW SECTION. Sec. 16. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.